EVEN as the inclusion of sustainability targets in investment portfolios grows in popularity, the challenge of balancing this approach continues to perplex investors.
But a Financial Analysts Journal study, Bonds with Benefits: Impact Investing in Corporate Debt, may offer encouragement. It finds that sustainability-oriented investors can meet their goals with corporate debt strategies, and that profit-oriented factor investors can achieve a portfolio with a certain sustainability level at a low cost.
I spoke with Desislava Vladimirova, who co-authored the study with Jieyan Fang-Klingler, for insights on the authors’ findings and to produce an “In Practice” summary of the study, which can...